* Central bank wants minimum 6.5 pct common equity Tier 1
capital
* Also wants minimum 10 pct in total capital
* Tier 1 capital rises to 12.2 pct in 2011
(Adds quotes, details)
By Helen Nyambura-Mwaura
PRETORIA, June 4 (Reuters) – South Africa’s central bank
wants the country’s lenders to hold more capital than the
minimum required by international standards as part of a global
drive to bolster confidence in the industry and prevent a repeat
of the 2007-9 financial crisis.
South Africa’s Reserve Bank said on Monday it wanted lenders
to hold at least 6.5 percent of common equity Tier 1 capital and
10 percent of total capital by 2015. Those figures are both 200
basis points above the minimum requirements set by a global
agreement meant to force banks to hold more capital.
Analysts say banks in Africa’s leading economy are already
well capitalised and are unlikely to require systemic support,
but will struggle to meet liquidity ratios.
Registrar of banks Rene Van Wyk said he would be discussing
with the international Basel committee later this month whether
high-grade corporate bonds by companies with higher ratings than
the sovereign rating can qualify as liquid assets.
They currently do not qualify according to the Reserve
Bank’s interpretation of the so-called Basel III rules, he said.
Continued…
